Embodiments of the present invention relate generally to online transactions, and more particularly, to online transaction involving eGift Card purchase and redemption.
Some online merchants currently offer the ability to purchase an item as an “eGift.” That is, the purchaser selects and pays for an item on the merchant's website, but rather than retrieving the product from inventory and shipping the item to the intended recipient, the recipient is notified, usually via email, that a gift has been selected. It is then up to the recipient to claim the gift. The benefit of this method is that if the recipient does not like the item selected by the purchaser, the recipient can convert the item into a gift card for the same value, e.g., similar to an exchange at a brick-and-mortar store, and select something else offered for sale by the merchant. In most instances, a service provider separate from the merchant provides the eGift service.
There are several drawbacks to such eGift systems. First, when the purchaser pays for the gift, payment is made to the service provider, who in turn places the funds in an escrow account. The funds are maintained in the escrow account until the recipient claims the gift or opts for the eGift card. Only then are the funds released and an eGift card is obtained from the merchant's preferred gift card processor. Thus, nothing is actually purchased when the gift is initially selected by the purchaser. This delays revenue to the merchant and presents significant security risks.
Additionally, the service provider techniques require deep integration with the merchant's inventory, pricing, fulfillment, and order management systems. This is primarily due to the fact that the recipient redemption process takes place entirely within the service provider's interface. That is, when the recipient opts to claim the gift, the recipient is not taken to the merchant's website, but instead to the service provider's interface. For example, when the recipient is prompted to select a color, size, or the like for the gift, the service provider interface must ensure that the selected options are available via the merchant's inventory system. The same is true for pricing and order of the gift as well, i.e., the system provider interface must obtain this information from the merchant. In addition, purchase selections may actually put a hold on inventory at the merchant. This technique requires unnecessary integration processes, creates the potential for technical failures, and renders customer care for products inconsistent.
Still further, with the purchase and redemption actions all occurring within the service provider's interface, it is the branding of the service provider which is typically most prominently featured during eGift processes. This can lead to confusion for the purchasers/recipients, who may not be expecting that their eGift procedure would be taking them to a third party site.
It is therefore desirable to provide an eGift Card method and system that immediately activates an eGift Card upon purchase and does not delay the merchant's revenue stream, that does not require significant integration into the merchant's inventory, pricing, and order management systems, and which keeps the purchaser and recipient within the merchant's environment.